A bullish pennant is a chart pattern that often indicates a continuation of a uptrend after a brief consolidation phase. It is formed when there is a sharp price incline (flagpole) followed by a period of consolidation, represented by converging trendlines that resemble a pennant shape. This pattern suggests that the buying pressure remains strong, and after the consolidation, the uptrend is likely to resume.
Entry Point: At the breakout
The entry point for a bullish pennant trading signal is when the price breaks above the upper trendline of the pennant pattern. This breakout confirms the continuation of the uptrend and signals a potential buying opportunity. If consolidation continues inside bearish pennant pattern entry point can be adjusted for decline of upper line of a pennant.
Stop Loss: $281.00
To manage risk, it is advisable to place a stop-loss order just below the lower trendline of the pennant pattern. If the price breaks below this level, it may invalidate the bullish signal, and the trade should be exited to limit potential losses. If consolidation continues inside bearish pennant pattern stop loss should be adjusted for incline of bottom trendline of a pennant.
Target Price 1: $310.00
The target price for bearish pennant can be estimated by measuring the height of the flagpole (the initial sharp price incline) and projecting it upward from the breakout point.
Target price for bears: 260.00
Entry Point: At the breakout
The entry point for a bullish pennant trading signal is when the price breaks above the upper trendline of the pennant pattern. This breakout confirms the continuation of the uptrend and signals a potential buying opportunity. If consolidation continues inside bearish pennant pattern entry point can be adjusted for decline of upper line of a pennant.
Stop Loss: $281.00
To manage risk, it is advisable to place a stop-loss order just below the lower trendline of the pennant pattern. If the price breaks below this level, it may invalidate the bullish signal, and the trade should be exited to limit potential losses. If consolidation continues inside bearish pennant pattern stop loss should be adjusted for incline of bottom trendline of a pennant.
Target Price 1: $310.00
The target price for bearish pennant can be estimated by measuring the height of the flagpole (the initial sharp price incline) and projecting it upward from the breakout point.
Target price for bears: 260.00
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